Surz Releases Book Championing Better, Safer TDFs
Author and frequent 401(k) Specialist contributor Ronald Surz today announced the publication of his new book explaining why he believes target date funds are broken, and how to fix them.
The book, “Fixing Target Date Funds: A Fiduciary Guide to Ameliorating Alarming Deficiencies,” is now available on Amazon, and in a special promotion will be available to download for free between Aug. 4-8.
TDFs, Surz said, are broken by far too much risk at their target dates when they’re typically 85% invested in risky assets. This, he adds, leaves investors vulnerable to major losses at the worst time in their lives. He points to 2008, when TDFs lost more than 30% of their value for those near retirement. Since then, he says risk levels have only increased.
Surz’s fix is an innovative glidepath that actually follows the academic theory that TDFs say they follow, but don’t—they’re much riskier. A revolutionary suite of U-shaped glidepaths ensures safe navigation “to” and “through” retirement, providing personalization while prioritizing protection.
“Target date funds have operated for too long without clear benchmarks, leaving both fiduciaries and investors guessing,” says Surz. “They expose near-retirees—especially Baby Boomers—to dangerous levels of risk. Sadly, it may take the next market crash to finally wake people up to the need for safer alternatives.”
To address this, Surz has introduced what he says are the industry’s first performance benchmarks for TDFs—tools designed to drive accountability, improve decision-making, and set a new standard for secure, responsible retirement planning.
“Fixing Target Date Funds” outlines what Surz sees as critical flaws in today’s target date funds–and how to fix them. For example:
- Misaligned Risks: TDFs claim a solid academic investment theory, but they stray dangerously from it, exposing investors to far more risk than theory.
- Proprietary Lock-In: All investments are controlled by fund managers of the TDF company who are unlikely to be the best in every asset class.
- Suppressed Innovation: A few large firms manage over 70% of TDF assets. Oligopolies quash innovation.
- Fiduciary Breaches: Fiduciaries are not vetting their TDF selection, opting to choose their bundled service provider, causing the buildup of the oligopoly.
Surz is president of Target Date Solutions, developer of the Safe Landing Glide Path followed by the SMART target date fund index, Soteria personalized target date accounts, and Age-Sage do-it-yourself lifetime investing.
• Click here to download a complimentary copy of the eBook (valid 8/4-8/8)
• Click here to order a print version
SEE ALSO:
• Risk Capacity Used in PTDAs is Much More Dangerous Than Risk Tolerance
• Benchmarking Personalized Target Date Accounts
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
